Download Syllabus - Brandeis University

Bus 252a
Marketing Management
Mondays and Wednesdays
9:30 – 11:00 am
Fall Semester 2016
International Hall
Sachar Building
Grace Zimmerman
Senior Lecturer
Email: [email protected]
Office: Lemberg 161
Office Hours: Mondays and Wednesdays
11:00 – 1:00 pm,
or by appointment
Brandeis University
International Business School
Course Description
Marketing is the sum of the activities undertaken by a company to stimulate sales of its
product or services with its customers. The marketing objective is to create, promote and
distribute products or services, at a price and quality deemed valuable by the company’s
customers, in order to create value and profit for the company. Maintaining a strong and
compelling value proposition and long-term relationship with the company’s customers
are vital for the company’s continued success and require constant monitoring of market,
environmental, technological and competitive forces. Marketing is therefore integral to
establishing a company’s strategic direction. This in turn makes marketing skills and
perspective essential to the success of all business managers in any business.
This course provides an in-depth exploration and practical application of basic marketing
tools. These include product policy, pricing, promotion, distribution, sales management,
and customer segmentation and retention. In most classes, we will analyze case studies
that require us to identify marketing opportunities, refine value propositions, select
customer segments and develop marketing programs for a variety of management
situations. The course also includes a number of creative and analytic assignments,
including a semester-long, group assignment.
Learning Goals and Outcomes
1.




You will learn how marketers:
Use core marketing concepts to evaluate marketing scenarios
Analyze and assess complex marketing challenges
Value quantitative and qualitative analysis
Develop an integrated marketing plan
2. Through case study discussions, written case write-ups and formal presentations,
you will learn to:
 Develop a comprehensive marketing analysis
 Build a persuasive argument
 Express that argument extemporaneously in the classroom among peers, in
writing and in with the aid of visuals in a formal presentation
 Make marketing decisions backed by solid reasoning
 To listen critically and respectfully to the ideas of classmates.
Course Approach
In each session of this course we will analyze and solve marketing problems from an
assigned case study. We will use our time together in the classroom to sharpen our skills
in diagnosing problems and to build a framework to understand and leverage marketing’s
complexities. To benefit from this approach, each student must come to class prepared
with an analysis and solution for the marketing opportunity or challenge at hand, not just
a regurgitation of case facts. Class time together will follow a discussion format, with a
constant challenging of viewpoints from the instructor and student alike.
Workload expectation
Success in this four- credit course is based on the expectation that students will spend a
minimum of 9 hours of study time per week in preparation for class (readings, papers,
discussion sections, preparation for exams, etc.).
Course Prerequisites
This course is for graduate students only and is required in the first semester of the first
year for all MBA candidates.
Course Materials
Textbook: There is no required textbook for the course. A Framework for Marketing
Management, written by Philip Kotler and Kevin Lane Keller, and published by Pearson,
Prentice Hall is highly recommended and widely available. Instead, your course pack
includes Harvard Business School Press chapters about important, select topics that
should be read as background for the cases and for deeper understanding of these key
topics.
CoursePack: Case studies are the focal point of most class discussions. Course packs
with the cases we will cover are REQUIRED and only available through Harvard
Business Publishing at http://hbsp.harvard.edu/, with a specific link to our course pack at
http://cb.hbsp.harvard.edu/cbmp/access/51388263
Course packs are comprised of copyrighted materials. Please respect intellectual
property by purchasing your own copy of the materials.
Syllabus Changes and Updates
The intention is to follow the syllabus as presented. However, changes to both order and
content will occur to make the best use of available or new resources, or to explore in
greater detail topics that arise during class discussions. Changes and specific
assignments will be announced during class, and students that are absent are responsible
for obtaining relevant changes from their classmates.
Grading
For the purpose of grading, assignments will be weighted as follows:
Class Participation
Homework
Final Exam
Case Write Up #1
Case Write Up #2
TOTAL
24%
4%
24%
24%
24%
100%
Disabilities: If you are a student with a documented disability on record at Brandeis
University and wish to have a reasonable accommodation made for you in this class,
please see me immediately.
Academic Integrity: You are expected to be honest in all of your academic work. Please
consult Brandeis University Rights and Responsibilities for all policies and procedures
related to academic integrity. Students may be required to submit work to TurnItIn.com
software to verify originality. Allegations of alleged academic dishonesty will be
forwarded to the Director of Academic Integrity. Sanctions for academic dishonesty can
include failing grades and/or suspension from the university. Citation and research
assistance can be found at LTS - Library guides.
Class Participation. Students are expected to attend every class and participate on a
regular basis. Less value will be placed on the quantity of your contributions than on
their quality. Participation is graded daily, as follows:
-5 absent without prior notification
-3 absent with prior notification
0 present but without a class contribution
+1 contributed a case fact
+2-3 contributed analysis or a reasoned recommendation
+4-5 contributed excellent analysis and/or reasoned recommendation
For many students, qualitative analysis comes more easily than quantitative analysis,
therefore, I will on occasion cold call students to present their quantitative analysis to the
class. Be prepared. If you are hesitant to participate in class, please come to see me. I
will work with you.
Absence from three or more classes can result in a failing participation grade for this
course. If you have to miss class for any reason, please notify me in advance.
Laptops, cell phones and other electronic devices are NOT allowed in this class. Sadly,
past students just couldn’t stop themselves from surfing the web, checking email and
Facebook and more during class. Other students have found these behaviors very
distracting. Therefore, you must print the case and bring it to class. We’ll need it.
Please select your seat for the semester by the start of the second class, and use a name
card, at least for the first several sessions.
Homework. You will have about 8 homework assignments designed to help you
thoroughly prepare your cases. These assignments will ask you to submit only the
quantitative analysis for the next session’s case at the start of class. The syllabus (below)
clearly identifies the questions that need to be formally submitted for the homework
assignment. No late submissions will be accepted.
Final Exam. The Final Exam will be a 25 minute oral presentation, including a 5 minute
question and answer period, of an analysis of a comprehensive marketing plan of a
current marketing campaign. Chose a product, service or company/brand that is dealing
with a marketing challenge and/or opportunity of interest. Analyze all aspects of their
comprehensive marketing plan, including description of the opportunity, market research,
target market selection, product design and pricing, distribution, competition, promotion
and communications plan. Give us, your audience, your appraisal of the merits of this
plan’s elements, which you approve of and which you would change, how and why. Tell
us whether you expect the company to achieve its stated goals or not, and how your
suggestions would impact the desired outcomes. Set the stage by giving your audience a
brief history of the product/service and brand, as well as the challenges, successes and
missteps that impacted the options that were available and led to the campaign in
question.
Brandeis University has terrific online research resources. Many of these can be found
here: http://guides.library.brandeis.edu/business/marketing
Feel free to work in groups of 4 people. As this is an international business school,
providing the advantage of learning to work with professionals from around the globe,
please choose teammates from around the world with no more than two teammates from
any one country. We’ll do three presentations per class during the last 3 classes of the
term (11/30, 12/5, 12/7). Absence on any of these dates will drop your individual final
grade by a full letter grade. Due dates for this project: team assignments - class #3;
project topic - class #6; summary of plan or findings - class # 16; PowerPoint slides for
team presentations from all teams – class 24 (Wednesday, November 30, also the first
day of presentations – plan your vacation travel accordingly). There is no other
written assignment for this project.
Your group grade for this project will be based on the quality and completeness of your
research, analysis and recommendations, the flow and logic of your presentation, how
compelling your arguments are, how well you use the allotted time, the proficiency of
your oral presentation and the answers you give to questions asked, and the usefulness,
clarity and design of your speaking aids (PPT, Prezi or Adobe slides). Your individual
final project grade will reflect the confidential input of your teammates.
Case Write-Up #1. For class #12, instead of just preparing the case for class discussion,
students should submit their answers in a case write-up of up to 4 pages. This is an
individual assignment, one that you need to do entirely on your own without the help of
any outside resources. Cases should be handed in at the start of class on Wednesday,
October 10. Submissions after the start of class will not be accepted. Cases write-up
grades will be based on completeness and quality of analysis and recommendations, and
the logic, strength and clarity of your arguments.
Case Write Up #2. For class # 21, instead of just preparing the case for class discussion,
students should submit their answers in a case write-up of up to 4 pages. This is an
individual assignment, one that you need to do entirely on your own without the help of
any outside resources. Cases should be handed in on or at the start of class on Monday,
November 16. Submissions after the start of class will not be accepted.
Written Case Analyses: You have 4 pages in which to write your analysis. You can also
include addendum, if you need or choose to. This case analysis is no different than any
of the cases we will do in class. You will be practicing case analysis skills virtually every
time you prepare for class. Organize the relevant facts. Don't give me case facts that
aren't pertinent to your analysis; I've read the case, too. Do necessary analysis. Come to
conclusions. Develop detailed recommendations. Be sure that your logic flows from
analysis through conclusions to recommendations. Be persuasive. You don't have to
follow the outline of the questions in the syllabus, but you need to include the answers to
the questions at a bare minimum. I don't need beautiful prose; you can use bullets, etc.,
but if you use a chart for pros and cons, say, be sure that you come to a clear conclusion.
Office Hours
My office hours are Mondays and Wednesdays 11:00 am – 1:00 pm in Lemberg 161,
and by appointment. Email is the best way to set an appointment
([email protected]). Please don’t hesitate to contact me if you need assistance
in any manner. I enjoy the opportunity to get to know you.
Assignments
Class #1:
Module:
Marketing Management
Introduction
(Mon 8/29)
Pre-assignment
Readings:
Framework for Marketing Strategy
Note on Low Tech Math
Discussion:
1.
2.
3.
4.
5.
Course Introduction
Assignments
Marketing Management
The Case Study Method – How to prepare for class
Some Thoughts on Business Plans and Business analysis
Class #2:
Module:
Integrated Marketing Strategy: An Introduction
Creating Value
Case:
Readings:
The Black & Decker Corporation (A): Power Tools Division
Textbook Chapter 9
Questions:
1. Why is Makita outselling Black & Decker 8 to 1 in an account which
gives them equal shelf space? (opening paragraph)
2. Why are Black & Decker’s shares of the two professional segments –
Industrial and Tradesmen – so different? Wouldn’t you expect them to
be similar?
3. What if anything, do you learn from B&D’s consumer research?
4. Joe Galli’s objective is “to develop and gain corporate support for a
viable program to challenge Makita for leadership” in the Tradesmen
segment. (pg 1) To gain support, the minimal share objective would
have to be “nearly 20% within three years, with major share ‘takeaway’ from Makita.” How realistic is this?
5. If you think Galli should pursue a “build share” strategy, what actions
do you recommend? Does the DeWalt idea have any merit? How
about the sub-branding option?
6. Be specific about what you would do and remember you have at least
three audiences to please:
 The end consumer, i.e. the Tradesmen
 The retailer
 Nolan Archibald and Gary DiCamillo
(Wed 8/31)
NO CLASS on Monday, September 5, The Labor Day Holiday, enjoy!
Class #3:
Module:
Strategy: The Rise and Fall of a Brand
Creating Value
(Wed 9/7)
Case:
Readings:
Snapple
None
Additional:
Team assignments are due.
Questions:
1. In the period of 1972 to 1993, why do you think that Snapple
flourished when so many small startup premium fruit drinks stayed
small or disappeared? Explore each of the Four Ps.
2. Now look at the period from 1994 to 1997. Did Quaker make an error
in buying Snapple or did they manage it badly?
3. Roll forward to 1998. What can Triarc’s managers learn from
Quaker’s experience? Is the Snapple target market “anyone with
lips?” Is it ok that Snapple “ends up meaning lots of different things to
lots of different people?” What are the risks and rewards of leaving
“what the brand stands for” open to consumers’ interpretations rather
than a strong positioning on it? And what does it mean to say that
Snapple is a fashion brand?
4. Identify the three highest priority initiatives you would start tomorrow
if you were in Mike Weinstein’s shoes. Justify them.
Class #4:
Module:
Demand, Competition & Product Positioning
Creating Value: Marketing Driven
Case:
Readings:
Xerox: Book-In-Time
Textbook Chapters 3
(Th 9/8)
HOMEWORK: TURN IN YOUR FORECASTS FOR THE NUMBER OF
MACHINES YOU THINK XEROX COULD SELL THROUGH DIRECT SALES
OR BY ESTABLISHING SERVICE CENTERS. SHOW YOUR ANALYSIS. IN A
COUPLE OF SENTENCES TELL ME WHICH OPTION YOU FAVOR AND
WHY?
Info:
Consumer Behavior Exercise case distribution and specific assignment.
Questions:
1. What value does BIT create in the Distribution Value Chain for
books?
2. Who will benefit from Book-In-Time? Who will be threatened?
3. What are the options available to Xerox? The pros and cons of each?
4. What should Xerox do?
Class #5:
Module:
Market Research
Creating Value: Market Driven
Case:
Readings:
Nestle Refrigerated Foods (A): Contadina Pasta & Pizza
None
(Mon 9/12)
HOMEWORK: TURN IN YOUR EXCEL SPREADSHEETS (ANSWER TO Q1).
Questions:
1. Using the BASES model described in Exhibit 9, forecast the estimated
demand (trial and repeat) for the 2 pizza options under consideration:
Pizza and Topping and Pizza Only. Most of the data needed for the
forecasting exercise is available on pages 15-34 (Exhibit 21).
Helpful Hints:
In Exhibit 21, there is a big difference between Contadina users and nonusers on the “top two box” scores. This will obviously affect the forecast
depending on what proportions are used for Contadina users versus nonusers in the population.
On page 14 (2nd to last paragraph), Nestle marketing research department
cautions us that parent brand usage could vary from 5% to 25%. It would
be worthwhile to judge the sensitivity of the forecast under 5%, 15% and
25% parent brand penetration scenarios.
2. What can one learn from Exhibits 13, 14 and 15?
3. How does the pizza concept test data (Exhibits 19, 20 and 21) compare
to the pasta concept test data (Exhibit 6)?
4. What is your reading of Exhibits 23 and 24 (including Exhibit 18 if
you wish)?
5. In general, how would you compare the pizza opportunity to the pasta
opportunity? What are the similarities? Differences?
6. Why was the pasta product so successful?
7. How do you like Nestle’s new product development process? For
pasta? For pizza?
8. Would you launch the pizza?
Class #6:
Module:
Buyer Behavior
Choosing Your Customers
(Wed 9/14)
Case:
Readings:
Consumer Behavior Exercise (A - F) (specific case to be assigned in class)
Consumer Behavior and Buying Process
Additional:
Final Project topic selection is due.
Assignment: Conduct the research assignment outlined in the case version you received
in class during the last session. Be prepared to share your findings
succinctly in approximately 3 minutes so that we can hear about several
interviews.
Those of you conducting interviews A – C are investigating how
consumers choose different types of products: who chose the product,
what motivated the purchase, how was the decision made and where was
the purchase made.
Those of you conducting interviews D - F are investigating how
consumers use different kinds of products: their experience with the
product, their feelings about the product, their relationship to the product
and/or brand, and their level of (dis)satisfaction with the product.
A and D interviews: mundane products costing $5 or less
suggestions: shampoo, toothpaste, soda, candybar
B and E interviews:
utilitarian products costing $100 more or less
suggestions: sweater/jacket, desk lamp,
backpack/briefcase, PDA/daytimer, cell phone,
haircut/beauty treatment
C and F interviews:
products that reflect on who you are costing $100 +
suggestions: sweater/jacket, stereo equipment, TV,
camera, skis, PDA, haircut/beauty treatment
Class #7:
Module:
Segmentation & Targeting: Traditional Marketing
Choosing Your Customers
Case:
Readings:
Sony Targets Laptop Consumers in China
Segmentation and Targeting
(Mon 9/19)
HOMEWORK: TURN IN YOUR ANALYSIS OF THE NUMBER OF LIKELY
CONSUMERS IN EACH SCENARIO (Question 3a).
Questions:
1. What is the global image of Sony VAIO? Do Chinese consumers have
additional perceptions of Sony and VAIO?
2. How should Lopez interpret and compare the different studies?
a. Compare the consumer interview results with the CLUES
report data. Why is there so much redundancy between the two
studies? How do the CLUES segments relate to the three
identities from the interviews? How are the four key consumer
goals identified in the interviews related to the CLUES
segments? Do the combined results of these two studies help or
hinder Lopez’s decision?
b. Compare the consumer interview results with the Compass
report data. Do these studies produce complementary,
redundant, or conflicting information? How do the Compass
segments relate to the identities mentioned in consumer
interviews? How do the Compass segments relate to the four
key consumer goals? Why is there less redundancy between the
interviews and Compass versus the interviews and CLUES? Do
the combined results of these two studies help or hinder
Lopez’s decision?
c. Compare the CLUES report data with the Compass report data.
Are there relationships between the segments defined in the
two studies? How do you explain the difference in
segmentation between the two studies? Do the combined
results of these two studies help or hinder Lopez’s decision?
3. Which segment(s) should Lopez target?
a. Looking at Exhibit 8, how many Entertainment Lovers are
likely to purchase a computer in the next twelve months? How
many of these will likely purchase a Sony? Perform similar
calculations on all segments. What do these calculations reveal
regarding the relative advantages and disadvantages of CLUES
and Compass?
b. If Lopez’s main goal is to steal share from other brands, which
study will provide the most useful foundation for his marketing
strategy?
c. If Lopez’s main goal is to capitalize on existing loyalty and
interest in Sony, which study will provide the most useful
foundations for his marketing strategy?
Class #8
Module:
New Product Launch: Non-Traditional Marketing
Communicating the Value Proposition
(Wed 9/21)
Case:
Readings:
Launching the BMW Z3 Roadster
None
Questions:
1. What factors underlie BMW’s desire to shift to a “non-traditional”
marketing venue for the Z3 launch?
2. Do you agree with McDowell that the Z3 launch qualifies as a
“paradigm shift” in marketing for BMW? For marketers in general?
3. McDowell claims that he will never go back to traditional marketing
after getting a taste of the non-traditional venue. Do you agree?
4. Was the Z3 launch successful? How do you know?
5. Helmut Panke has engaged you as a consultant on design of the Phase
II plan. What specific objective(s) would you set? What budget and
media plan would you propose?
Class #9:
Module:
PR and Promotions
Communicating the Value Proposition
Case:
Readings:
Nike Inc.: Developing an Effective Public Relations Strategy
None
Questions:
1. Why was Nike in particular targeted?
2. What are some of the key lessons Nike could learn from their actions
prior to May, 1998?
3. Come to class prepared to contribute what you perceive as a public
relations coup or missed opportunity and why you see it as such.
Hint: The writer bounces back in forth in time a lot. Sketch out a timeline,
nothing too elaborate, just something to keep things in chronologic order.
(Mon 9/26)
Class #10:
Module:
Aligning Message, Media and Metrics
Communicating the Value Proposition
Case:
Readings:
Pepsi Lipton Brisk
None
(Wed 9/28)
HOMEWORK: TURN IN YOUR QUANTITATIVE ANALYSIS OF THE COSTS
AND BENEFITS OF TV VERSUS VIRAL ADVERTISING.
Questions:
1. Should Brisk be advertised on primetime TV or with viral ads in the
months following the Super Bowl ad? What are the benefits of each
media? What are the costs?
2. How are the ways in which target consumers view ads in each media
different? Which differences matter most to the protagonists? Can
these consumer behaviors be factored into a single measure that helps
the protagonists compare the benefits of each media?
3. Which of the four ad concepts should Mary Barnard and Marisol
Tamaro choose? What elements matter?
4. What does Mekanism mean by engagement? How do they attempt to
increase engagement with the brand using viral ads?
NO CLASS on Monday, October 3, The Rosh Hashanah Holiday, enjoy!
Class 11:
Module:
B2B OR Industrial Marketing Communications
Communicating the Value Proposition
Case:
Readings:
Maersk Line: B2B Social Media
None
(Wed 10/5)
HOMEWORK: TURN IN YOUR ANSWER TO QUESTION 3.
Questions:
1. Why do you think Maersk Line was so successful in social media?
What do you think are Maersk Line’s key drivers of success?
2. Evaluate how Maersk Line executed on its social media plan and
platforms.
3. How do you think Jonathan Wichmann calculated the 1,500 percent
ROI on Facebook? Do you agree with his calculation? Why or why
not?
4. How do you think Maersk Line’s competitors will react to the
company’s success in social media?
5. What are the challenges facing Maersk Line in social media going
forward?
6. What should Maersk Line do next? What areas should the company
focus on and why?
Class #12:
Module:
Channels Conflicts & Pricing Strategies
Going to Market
(Mon 10/10)
DUE:
Your hardcopy case write up is due BEFORE the start of class. Turn
it in on LATTE. Please remember, this is an individual assignment.
Your case write-up is to be analyzed and written without consultation
with anyone. Be specific and detailed in you analysis and
recommendations.
Case:
Aqualisa Quartz: Simply a Better Shower (HBS 9-502-030)
Questions:
1. What is the Quartz value proposition to plumbers? To customers?
2. Why is the Quartz shower not selling?
3. Aqualisa spent three years and €5.8 million developing the Quartz.
Was the product worth the investment? Is Quartz a niche product or a
mainstream product?
4. Aqualisa currently has three brands: Aqualisa, Gainsborough, and
ShowerMax. What is the rationale behind this multiple brand
strategy? Does it make sense?
5. What should Rawlinson do to generate sales momentum for the Quartz
product? Should he change his marketing strategy to target consumers
directly, target the DIY market, or target developers? Should he lower
the price of the Quartz? Or, should he do something different
altogether?
NO CLASS on Wednesday, October 12, The Yom Kippur Holiday.
NO CLASS on Monday, October 17, The Sukkot Holiday, enjoy!
Class #13:
Module:
Distributors vs. Direct distribution, Sizing the Market
Going To Market
Case:
Readings:
Biopure
Developing and Managing Distribution Channels
(Wed 10/19)
HOMEWORK: TURN IN YOUR QUANTITATIVE ASSESSMENT OF THE
POTENTIAL SIZE OF THE ANIMAL AND HUMAN MARKETS FOR
BIOPURE’S PRODUCTS (Q1).
Questions:
1. How do you assess BioPure’s potential in the human market? The
animal market?
2. What are the biggest obstacles to Biopure’s success in the human
market? The animal market?
3. How might Oxyglobin be a threat to Hemopure? How might it be an
asset to Hemopure?
4. What should Biopure do regarding the commercial release of
Oxyglobin? If they release, what price should they set? How should it
be distributed?
NO CLASS on Monday, October 24, The Shmini Atzeret Holiday, enjoy!
Class #14:
Module:
Channels of Distribution, Adding Channels
Going to Market
(Tues 10/25)
Case:
Readings:
Stihl Inc.: Go-To-Market Strategy for Next Generation Consumers
None
Questions:
1. Was Stihl’s decision to avoid the home-center channel a good one?
What are the benefits of sticking with it? What are your concerns?
2. What should Stihl change, if anything, in how the company goes to
market as Generation X and (later) Generation Y mature into homeowning, tool purchasing consumers?
3. Looking forward three to five years, does the company’s total reliance
on its dealers continue to make sense?
4. If a multi-channel system appears more suitable to market needs and
Stihl corporate objectives, how can the company get there from here?
Class #15:
Module:
Pricing Options in Competitive B2B Markets
Pricing to Capture Value
Case:
Readings:
Atlantic Computer: Bundle of Pricing Options
Creating Consumer Value
(Wed 10/26)
HOMEWORK: TURN IN YOUR QUANTITATIVE ANALYSIS OF JOWER’S
PRICING OPTIONS.
Questions:
1. What price should Jowers charge DayTraderJournal.com for the
Atlantic Bundle (i.e., Tronn servers + PESA software tool)?
2. Think broadly about the top-line revenue implications from each of the
four alternative pricing strategies. Approximately how much money
over the next three years will be “left on the table” if the firm were to
give away the software tool for free (i.e., status quo pricing) versus
utilizing one of the other pricing approaches?
3. How is Matzer likely to react to your recommendation?
4. a) How is Cadena’s sales force likely to react to your
recommendation?
b) What can Jowers recommend to get Cadena’s hardwareoriented sales force to understand and sell the value of the PESA
software effectively?
5. How are customers in your target market likely to react to your
recommended pricing strategy? What response can be provided to
overcome any objections?
6. How is Ontario Zinc’s senior management team likely to react to the
Atlantic Bundle?
Class #16:
Module:
Marketing Management
Strategic Marketing
Due:
Your 2 page, bullet formatted outline for your final projects is due at the
start of class. You must demonstrate a clear under-standing of the 5Cs and
4Ps. Position the opportunity or challenge that your company is facing
within this analysis. How will you leverage your company’s strengths or
overcome its weaknesses in addressing your chosen issue. I would like to
see the beginnings of a plan of recommendations. You will need a detailed
set of comprehensive recommendations for your final project. You might
also considerß team member assignments and a work schedule for the
remainder of the semester.
Case:
Readings:
Speaker:
None
None
Curtis Tearte
CEO, Information Technology Consultant, Formerly of IBM
Current Brandeis University Trustee
(Mon 10/31)
Class #17:
Module:
Differential Brand Pricing & Brand Impact
Creating Value Through Pricing
Case:
Readings:
Virgin Mobil USA: Pricing for the Very First Time
Textbook Chapter 11
(Wed 11/2)
HOMEWORK: PROVIDE YOUR QUANTITATIVE ANALYSIS FOR Q1. IN A
COUPLE OF SENTENCES, EXPLAIN WHICH OPTION YOU WOULD
CHOOSE AND WHY?
Questions:
1. Given Virgin Mobile’s target market (14 – 24-year-olds), how
should it structure its pricing? The case lays out three options.
Which option would you choose and why? In designing your pricing
plan, be as specific as possible with respect to the various elements
under consideration (e.g., contracts, the size of the subsidies, hidden
fees, average per-minute charges, etc.).
2. How confident are you that the plan you have designed will be
profitable? Provide evidence of the financial viability of your pricing
strategy.
3. The cellular industry is notorious for high customer dissatisfaction.
Despite the existence of service contracts, the big carriers churn
roughly 24% of their customers each year. Clearly, there is very little
loyalty in this market. What is the source of all of this dissatisfaction?
How have the various pricing variables (contracts, pricing buckets,
hidden fees, off-peak hours, etc.) affected the consumer experience?
Why haven’t the big carriers responded more aggressively to customer
dissatisfaction?
4. How do the major carriers make money in this industry? Is there a
financial logic underlying their pricing approach?
5. What do you think of Virgin Mobile’s value proposition (the Virgin
Xtras, etc.)? What do you think of its channel and merchandising
strategy?
6. Do you agree with Virgin Mobile’s target market selection? What are
the risks associated with targeting this segment? Why have the major
carriers been slow to target this segment?
Class #18:
Module:
Differential Pricing to Fine Tune Demand
Pricing to Capture Value
(Mon 11/7)
Case:
Readings:
Uber: Changing the Way the World Moves
Note on Behavioral Pricing
Questions:
1. Do you agree or disagree with Uber’s surge pricing policy? What are
the reasons it can be perceived as unfair? What does it mean to say that
a pricing policy is exploitative? What are the risks of the policy to
Uber? Given these risks, should Uber modify its policy? Be prepared
to defend your answer.
2. Uber is notoriously aggressive in its business tactics. It frequently
operates without getting regulatory approval and it often ignores legal
concerns; as a consequence, the company has become a lightning rod
for criticism. Do you agree with Uber’s aggressive tactics? Is there a
more diplomatic way for Uber to conduct its business? Should Uber be
taking more of a “tiptoe” approach when it enters markets?
3. Uber has become enormously popular among consumers in a very
short period of time. How has the company accomplished this?
4. How well does Uber treat its drivers? From a driver’s standpoint, is it
better to drive for Uber or is it better to drive for a taxi/limo service? Is
it economically more attractive to drive for Uber? What would you
imagine are the biggest complaints drivers have about driving for
Uber? What would you imagine are the most appreciated benefits?
What is the profile of a typical Uber driver, and how does it compare
to the profile of they typical taxi or limo driver?
5. How robust is Uber’s operating model? Where are the weak links in its
service model? Is Uber vulnerable? In what way?
6. In its relatively short life span, Uber has attracted a lot of media
attention. Why is this? What is it about the Uber business model that is
both compelling and polarizing? In addition, why has Uber managed
to achieve such a high valuation? What are the pros and cons of a high
valuation?
Class #19:
Module:
Declining Markets & Sales Management
Managing Customers for Profits
Case:
Readings:
Hunter Business Group: Team TBA
Customer Management
(Wed 11/9)
HOMEWORK: TURN IN YOUR RECOMMENDATION FOR HBG (THE
ANSWER TO QUESTION 4).
Questions:
1. What do you think of HBG’s approach? Do you agree with the
approach of managing costs given a revenue target? Is there
something wrong with this approach? If so, what?
2. How much validity do you give the customer contact matrix? For
which industries do you see it effective, and where are its limitations?
3. How important are direct marketing mechanisms in the B2B context?
4. Given the data presented in the case and the assumptions that a)
revenues declined 20% from 1993 and that b) there are 1,500 active
accounts, analyze each of the three options with which Kowalski is
faced at the end of 1993. Model your assumptions for 1994 based on
the template used for 1993.
5. How important is the Gold Account program as an incentive to
dealers? Can dealers be persuaded to purchase a wider variety of
products, and will this result in the sustainability of the TBA program
(i.e., to what extent will dealers move up from an A to a AA account,
etc.)?
6. What is the tradeoff, if any, between eliminating sales force (thereby
reducing the “sales and marketing expense” component of operating
expense) and the likely corresponding drop off in contacts made as a
result of decreased workforce? Who would you eliminate – field reps,
telesales operators, or mail personnel? Would you increase the
number of contacts by the same number of employees?
7. What do you think will happen to Team TBA in the next 3 to 5 years?
Class #20:
Module:
Customer Relationship Management (CRM)
Managing Customers for Profit
(Mon 11/14)
Case:
Readings:
Harrah’s Entertainment, Inc.
Textbook Chapter 4
Questions:
1. What are the objectives of the various database marketing programs
and are they working?
2. Why is it important to use the “customer worth” in the DBM efforts
rather than the observed level of play?
3. How does Harrah’s integrate the various elements of its marketing
strategy to deliver more than the results of DBM?
4. What is the sustainability of Harrah’s actions and strategy?
5. What are the privacy and ethical issues that Harrah’s should be
concerned about?
Class #21:
Module:
Going Global
Does Your Value Proposition Travel?
Case:
Readings:
Gillette Indonesia
None
DUE:
Your hardcopy case write up is due BEFORE the start of class. Please
submit your write up on LATTE. Please remember, this is an
individual assignment; you must work entirely on your own. Your
case write-up is to be analyzed and written without consultation with
anyone. Be specific and detailed in you quantitative and qualitative
analysis and recommendations. Build a logical and persuasive
argument.
Questions:
1. What factors determine demand for blades? How can demand be
increased? Do you agree with Allan or Effio’s sales forecasts? Why?
What are the constraints to growth?
Special instructions: Prepare a 1996 income statement projection for
Gillette Indonesia shaving products. Use the spreadsheet provided on
LATTE.
2. How is Gillette doing in Indonesia? Has Gillette enjoyed first mover
advantage?
3. What is the Lifetime Value of a Sensor customer?
4. How should Gillette accelerate the development of the blade market in
Indonesia?
(Wed 11/16)
Class #22:
Module:
Integrated Marketing Strategies – Line Extensions
Sustaining Value
Case:
Readings:
Colgate Palmolive Co – Precision Toothbrush
None
(Mon 11/21)
HOMEWORK: TURN IN YOUR QUANTITATIVE PROJECTIONS FOR SALES
UNDER NICHE AND MAINSTREAM LAUNCHING STRATEGIES (Q3).
Questions:
1. What changes are occurring in the toothbrush category?
Assess Colgate-Palmolive’s competitive position.
2. How is the toothbrush market segmented? Compare consumer
behavior for toothbrushes and toothpaste.
3. What are the arguments for launching Precision as (a) a niche product
and (b) a mainstream brand?
4. What marketing recommendations would you make to Steinberg? Be
specific in your recommendations. Be sure to cover all 4 “Ps.”
Wednesday 11/23 is the day before Thanksgiving: NO CLASS
Thursday is Thanksgiving. Enjoy the holiday!
Class #23:
Module:
Marketing Management
Brand Strategy
Case:
Readings:
None
None
Speaker:
Steven Kane
Mobile game CEO and Entrepreneur
(Mon 11/28)
Class #24:
Module:
Marketing Management
Semester Review
(Wed 11/30)
Case:
There is no case assignment due for this class. We will review all the
cases we’ve analyzed this semester. In preparation, take the time
to review the cases we’ve discussed this semester. What are the 2 or 3
important points of learning for each case?
DUE:
PowerPoint slides are due from all teams at the start of class.
All teams must submit hard copy of their PPT slides at the start of class.
Teams may not alter their slides after they have been submitted for any
reason. On the day of your presentation, be sure that your slides are
loaded and ready to go before the start of class so that we can use every
minute productively.
Each student will also turn in their individual, confidential team
assessments.
Final Project Presentations
Group 1 and 2 (if necessary)
Each student will bring a presentation evaluation sheet to each of the last
four days of class in order to rate other teams’ presentations.
Class #25:
Final Project Presentations
Groups 3 - 5
(Mon 12/5)
Class #26:
Final Project Presentations
Groups 6 - 8
(Wed 12/7)